FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT https://www1.sgxnet.sgx.com/sgxnet/lcanncsubmission.nsf/vwprint/bb0a31278a988363482579... Page 1 of 1 27-Feb-2012 Print this page Full Year Results * Financial Statement And Related Announcement * Asterisks denote mandatory information Name of Announcer * Company Registration No. Announcement submitted on behalf of Announcement is submitted with respect to * Announcement is submitted by * Designation * 200410428C Guo Yun Executive Director Date & Time of Broadcast 27-Feb-2012 17:38:37 Announcement No. 00090 >> Announcement Details The details of the announcement start here... For the Financial Period Ended * 31-12-2011 Description Please see attached. Attachments China_Haida_FullYearResults_FY2011.pdf Total size = 203K (2048K size limit recommended) Close Window
2011 Page 1 of 13 The Board of Directors of China Haida Ltd. is pleased to announce the consolidated results of the Group for the year ended 31 December 2011. PART I 1(a) INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2, & Q3) HALF-YEAR AND FULL YEARS RESULTS A statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year. STATEMENT OF COMPREHENSIVE INCOME 合并利润报表 (Amounts expressed in thousands of Chinese Renminbi ("RMB") currency) Revenue 销售收入 379,567 333,498 13.8 % Cost of sales 销售成本 (347,253) (298,234) 16.4 % Gross profit 毛利 32,314 35,264 (8.4)% 毛利 Gross profit margin 毛利率 8.5% 10.6% (2.1)% Other Income 其他收入 2,201 2,443 (9.9)% Selling and distribution expenses 营业费用 (9,862) (9,486) 4.0 % Administrative expenses 管理费用 (17,591) (18,243) (3.6)% Profit from operations 营运利润 7,062 9,978 (29.2)% Finance costs 财务费用 (1,256) (1,467) (14.4)% Profit before taxation 税前利润 5,806 8,511 (31.8)% Taxation 所得税 (2,889) (4,234) (31.8)% Profit after taxation 净利润 2,917 4,277 (31.8)% 净利润 Other comprehensive income/(expenses): 其他收入和费用 : 1 Jan 2011 1 Jan 2010 Variance to to Increase/ 31 Dec 2011 31 Dec 2010 (Decrease) FY2011 FY2010 RMB '000 RMB '000 % Unaudited Audited Currency translation differences 汇兑损益 (117) 175 (166.9)% Total comprehensive income attributable to equity holders of the company 股东应得总净利 股东应得总净利 2,800 4,452 (37.1)%
2011 Page 2 of 13 Explanatory Notes A Profit before taxation The following items have been included in arriving at profit before taxation: 1 Jan 2011 1 Jan 2010 to to 31 Dec 2011 31 Dec 2010 FY 2011 FY 2010 Note RMB '000 RMB '000 Unaudited Audited Other income: 其他收入 : - Interest income on bank deposits (1) - 利息收入 193 567 - Sales of scraps (2) - 费料收入 1,734 1,611 - Government Grant / Incentive (3) - 政府津贴 274 253 - Others - 其他 - 12 2,201 2,443 Interest expenses (4) 利息费用 (1,256) (1,467) Allowance for doubtful trade receivables,net (5) 坏账准备 (469) (1,535) Foreign exchange loss - net (6) 外汇损益 (970) (585) Amortisation of lease prepayments 分摊预付土地使用费 (302) (301) Depreciation of property, plant and equipment 固定资产折旧费 (8,193) (8,752) Note (1) Lower interest income attributed to lower bank deposits and lower bank deposit rates. In FY2011, the weighted average interest rate for bank deposits was between 0.10% to 0.50% per annum. (FY2010 : weighted average deposit interest rate was between 0.36% to 2.25% per annum.) (2) Sales of scraps were marginally higher in FY2011 and attributed mainly to sales of aluminium panel waste. (3) This comprised of a grant RMB196,000 and subsidy RMB78,000 provided by the PRC government to the whollyowned subsidiary, Jiangyin Litai Decorative Materials Co. Ltd. ( Litai ) to support a local charity and a global expansion incentive respectively. (4) Low interest expenses mainly due to the repayment of RMB15 million short-term bank loan. Interest was charged at a weighted average rate of 6.36% per annum. (FY2010 : weighted average rate was 5.58%.) (5) Comprised of current year allowance for doubtful trade receivables RMB1,582,000 offset by an amount previously provided now written back RMB1,113,000. (6) Higher net exchange loss was registered during the financial year and attributed mainly to the falling US dollars against the strong RMB and SGD dollars.
2011 Page 3 of 13 1(b)(i) A statement of financial position (for the issuer and Group), together with a comparative statement as at the end of the immediately preceding financial year. 资产负债表 BALANCE SHEETS THE COMPANY (Amounts expressed in thousands of Chinese As at As at As at As at Renminbi ("RMB") currency). 31-Dec-11 31-Dec-10 31-Dec-11 31-Dec-10 Unaudited Audited Unaudited Audited Non-Current Assets 长期资产 Property, plant and equipment 固定资产 75,335 83,172 72 178 Investment in a subsidiary 子公司投资额 - - 115,665 120,743 Lease prepayments 土地使用预付 12,325 12,626 - - 流动资产 Current Assets Lease prepayments 土地使用预付 302 303 - - Inventories (1) 存货 64,045 60,890 - - Trade and bills receivables (2) 应收账款 + 票据 77,246 60,603 - - Other debtors, deposits and prepayments 其他应收款 4,245 1,771 107 112 Advance payments to a related party (trade) (3) 预付款 - 关联公司 ( 贸易 ) 12,199 23,001 - - Due from a related party (trade) 应收款 - 关联公司 ( 贸易 ) 5,817 5,000 - - Cash and bank balances (4) 货币资金 ( 银行存款 ) 57,536 70,610 6,428 7,022 Total Current Assets 资产总计 221,390 222,178 6,535 7,134 资产总计 TOTAL ASSETS 309,050 317,976 122,272 128,055 流动负债 Current Liabilities Trade payables 应付账款 23,669 19,250 - - Income tax payable 应付所得税 160 792 - - Other payables and accruals 其他应付账款 8,854 9,367 1,537 1,638 Due to related party (non-trade) 应付款 - 关联公司 ( 非贸易 ) - - 2,274 2,256 Short-term bank loans (5) 短期借款 7,000 22,000 - - TOTAL LIABILITIES 负债总计 39,683 51,409 3,811 3,894 NET ASSETS 净资产 269,367 266,567 118,461 124,161 净资产股东权益 SHAREHOLDERS' EQUITY Share capital 实收资本 140,543 140,543 140,543 140,543 Statutory reserve fund 盈余公积 19,548 18,817 - - Capital reserve 资本备用金 47,946 47,946 - - Currency translation reserve 汇兑 (932) (815) (2,819) 2,377 Revenue reserve / (Accumulated losses) 未分配利润 62,262 60,076 (19,263) (18,759) TOTAL EQUITY 股东权益合计 269,367 266,567 118,461 124,161 股东权益合计
2011 Page 4 of 13 1(b)(i) A statement of financial position (for the issuer and Group), together with a comparative statement as at the end of the immediately preceding financial year. (1) Inventories as at 31 December 2011 had increased as a result of increase in customers specifications and anticipation of customers orders. (2) Higher sales in the last quarter had contributed to the increase in trade receivables. Day sales outstanding as at 31 December 2011 was 58 days as compared to 56 days in the previous year. A lower net allowance for doubtful trade receivables of approximately RMB0.47 million was recorded for the current year as compared to about RMB1.5 million net allowance in FY2010. The accumulated allowance for doubtful trade receivables as at 31 December 2011 was approximately RMB10.25 million. (FY2010 : approximately RMB9.8 million) (3) As at 31 December 2011, the advance to related party for the purchase of raw materials amounted to approximately RMB12.2 million. (31 December 2010 : RMB23.0 million) (4) Decrease in cash and bank balances due mainly to repayment of short-term bank loans RMB15 million. (5) Decrease in short-term bank loans due to the repayment of RMB15 million in December 2011. 1(b)(ii) Aggregate amount of group s borrowings and debt securities. As at 31 Dec 2011 As at 31 Dec 2010 Secured Unsecured Secured Unsecured RMB 000 RMB 000 RMB 000 RMB 000 Amount repayable in one year or less, or on demand 7,000-7,000 15,000 Details of any collateral As at 31 December 2011, bank loans totaling RMB7,000,000 were secured by leasehold building and land use rights with net book values of approximately RMB7,654,000 and RMB1,388,000 respectively (net book values as at 31 December 2010 were RMB7,706,000 and RMB1,424,000 respectively). Interest was charged at a weighted average rate of 6.36% (31 December 2010 : 5.58%) per annum. 5 mil w secured by 江阴和泰金属制品有限公司担保
2011 Page 5 of 13 1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. CONSOLIDATED CASH FLOW STATEMENT 合并流动现金报表 (Amounts expressed in thousand of Chinese Renminbi ("RMB") Currency) 2011 2010 Unaudited Audited Cash flows from operating activities Profit before taxation 5,806 8,511 Adjustments for: Allowance for doubtful debts, net 469 1,535 Amortisation of lease prepayment 302 301 Depreciation of property, plant and equipment 8,193 8,752 Interest expenses 1,256 1,467 Interest income (193) (567) Effect of changes in exhange rates (115) 158 Operating profit before working capital changes 15,718 20,157 Inventories (3,155) 341 Trade and bills receivables (17,112) (14,105) Other debtors, deposits and prepayments (2,474) 151 Trade and other payables 3,906 (2,706) Balances with related parties 9,985 (4,748) Cash generated / (used in) from operations 6,868 (910) Interest paid (1,256) (1,467) Interest income received 193 567 Tax paid (3,521) (3,887) Net cash generated / (used in) from operating activities 2,284 (5,697) Cash flows from investing activities Purchase of property, plant and equipment (358) (208) Net cash used in investing activities (358) (208) Cash flows from financing activities Repayment of short-term bank loans, representing net cash used in financing activities (15,000) - (10,000) Net decrease in cash and bank balances (13,074) (15,905) Cash and bank balances at beginning of year 70,610 86,515 Cash and bank balances at end of year 57,536 70,610
2011 Page 6 of 13 STATEMENTS OF CHANGES IN EQUITY (Amount expressed in thousands of Chinese Renminbi ( RMB ) currency). 1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. Group Attributable to equity holders of the Company Statutory Currency Share Reserve Capital Translation Revenue Total Capital Fund Reserve Reserve Reserve Equity Balance as at 1.1.2010 140,543 17,894 47,946 (990) 56,722 262,115 Total comprehensive income for the year - - - 175 4,277 4,452 Transfer of statutory reserve fund - 923 - - (923) - Balance as at 31.12.2010 140,543 18,817 47,946 (815) 60,076 266,567 Balance as at 1.1.2011 140,543 18,817 47,946 (815) 60,076 266,567 Total comprehensive income for the year - - - (117) 2,917 2,800 Transfer of statutory reserve fund - 731 - - (731) - Balance as at 31.12.2011 140,543 19,548 47,946 (932) 62,262 269,367 Company Currency Share Translation Revenue Total Capital Reserve Reserve Equity Balance as at 1.1.2010 140,543 (3,832) (18,461) 118,250 Total comprehensive income for the year - 6,209 (298) 5,911 Balance as at 31.12.2010 140,543 2,377 (18,759) 124,161 Balance as at 1.1.2011 140,543 2,377 (18,759) 124,161 Total comprehensive expenses for the year - (5,196) (504) (5,700) Balance as at 31.12.2011 140,543 (2,819) (19,263) 118,461 1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. There were no outstanding convertibles as well as treasury shares and there had been no change in the Company s issued and paid-up share capital for the year ended 31 December 2011. As at 31 December 2011, the share capital of the Company was RMB140,543,000 comprising 254,880,660 ordinary shares.
2011 Page 7 of 13 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year. As at As at 31 Dec 2011 31 Dec 2010 Total number of issued shares 254,880,660 254,880,660 less: Treasury shares - - Total number of shares excluding treasury shares 254,880,660 254,880,660 1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on. Not applicable. 2. Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice. The figures have not been audited nor reviewed by the auditors. 3. Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter). Not applicable. 4. Whether the same accounting policies and methods of computation as in the issuer s most recently audited annual financial statements have been applied. The Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period as in the last audited financial statements for the year ended 31 December 2010 except as described in Section 5 below. 5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. The Group adopted all the applicable new and revised Singapore Financial Reporting Standards ( FRS ) including related interpretations ( INT FRS ) which become effective for the financial statements of the Group and of the Company for the financial year ended 31 December 2011. The adoption of the new and revised FRS and INT FRS did not give rise to any adjustments to the opening balance of the accumulated profits of the Group and of the accumulated losses of the Company for the prior periods or changes in comparatives. The adoption of the new and revised FRS and INT FRS did not give rise to any significant changes to the financial statements.
2011 Page 8 of 13 6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. 1 Jan 2011 1 Jan 2010 to to 31 Dec 2011 31 Dec 2010 Unaudited Audited Profit after taxation 净利润 2,917 4,277 Weighted average number of ordinary shares in issue applicable to earnings 普通股总计 254,880,660 254,880,660 Earnings per ordinary share (RMB cents) 每股收益 - Basic - 基本收益 1.1 1.7 - Diluted - 稀释收益 - - 7. Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the: (a) current financial period reported on; and (b) immediately preceding financial year. THE COMPANY As at As at As at As at 31 Dec 2011 31 Dec 2010 31 Dec 2011 31 Dec 2010 Net Assets () 净资产 269,367 266,567 118,461 124,161 Net asset value per ordinary share based on the total number of issued shares excluding treasury shares as at the end of the respective years (RMB cents) 净资产值 : 105.7 104.5 46.5 48.7 Net asset value per ordinary share was calculated based on 254,880,660 issued ordinary shares excluding treasury shares as at 31 December 2011 and 31 December 2010 respectively. 8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group s business. It must include a discussion of the following: (a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and
2011 Page 9 of 13 (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. REVIEW OF PERFORMANCE A (i) A Consolidated Comprehensive Income Statement (FY2011 vs FY2010) Revenue For FY2011, the Group achieved higher revenue of approximately RMB380 million, an increase of 13.8% or RMB46 million as compared to the previous financial year. Total revenue comprised of domestic sales RMB231 million or 61.0 % and export sales RMB149 million or 39.0%. (FY2010: domestic sales RMB204 million or 61.2% and export sales RMB129.5 million or 38.8%). Domestic sales increased RMB27 million or 13.2% as compared to FY2010. The increase was attributed mainly to the higher sales of both Aluminium Composite Panels ( ACP ) and Aluminium Single Panels.( ASP ). There was an increasing demand of ASP in the more complex and larger construction projects. Sales of paint spray services within the PRC has fallen marginally by RMB1.3 million to RMB26.7 million. Export sales of ACP also increased RMB18.5 million or 14.3% as compared to FY2010. Demand in sales of ACP for both interior and exterior usage had been increasing due to higher orders from the overseas customers. (ii) (iii) Gross Profit Despite the higher sales, gross profit had declined approximately 8.5% to RMB32.3 million. The fall in gross profit was attributed to the lower gross profit margin which had declined approximately 2.1%, from 10.6% to 8.5% in FY2011. The decrease in gross profit margin was attributed mainly to the higher raw material and direct labour costs. Operating Expenses Total operating expenses fell by about 1% or approximately RMB0.3 million, from RMB27.7 million to RMB27.4 million. The decrease was attributed mainly to the decrease in Administrative expenses, offset partially by the higher Selling and Distribution expenses. With higher sales, selling and distribution expenses increased 4% or RMB0.4 million, from approximately RMB9.5 million to RMB9.9 million. The net increase was due mainly to the higher payroll costs, travelling and transport expenses, insurance expenses offset partially by lower advertising and freight expenses. Administrative expenses declined about 3.6% or RMB0.6 million, from approximately RMB18.2 million to RMB17.6 million. The decrease was due mainly to a lower net provision of allowance for doubtful trade receivables RMB0.47 million as compared to RMB1.5 million in FY2010, lower entertainment, inspection and insurance costs offset by higher staff payroll and related expenses and higher exchange loss as a result of the weaker US dollars versus RMB. (iv) (v) (vi) (vii) Other Income Please see explanatory note A to Part 1(a). Finance Costs Although the weighted average bank interest rate had increased from 5.58% per annum in FY2010 to 6.36% in FY2011, however, lower interest expenses were recorded because of lower short-term bank loans due to the repayment of RMB15 million in Dec 2011. Finance costs decreased about 14.4% or approximately RMB0.2 million, from RMB1.5 million to RMB1.3 million. Income Tax The income tax rate applicable to Litai is 25%, however for the year under review, the effective tax rate of approximately 49.7% (FY2010: 49.7%) was recorded due to certain expenses which were not tax deductible and were added back for tax purposes. Net Profit Notwithstanding the higher revenue, Group net profit after taxation decreased 32% or approximately RMB1.4million, from RMB4.3 million to RMB2.9 million, due mainly to lower gross profit.
2011 Page 10 of 13 B Consolidated Balance Sheet (31 December 2011 vs 31 December 2010) Total current assets decreased marginally by approximately 0.4% from RMB222.2 million as at 31 December 2010 to RMB221.4 million as at 31 December 2011. This was primarily due to the following factors: i) decrease in cash and bank balances RMB13.1 million due to repayment of short-term bank loan RMB15 million in December 2011. ii) decrease in advance to a related party for purchase of raw materials RMB10.8 million. iii) increase in inventories RMB3.2 million attributed to increase in customers demands and anticipation of customers orders. iv) the increase in trade receivables RMB6.4 million due mainly to higher sales in the last quarter and lower net doubtful debt provisions. Total current liabilities amounted to RMB39.7 million as at 31 December 2011, representing a 22.8% or RMB11.7 million decrease compared to 31 December 2010. This was due mainly to the repayment of RMB15 million short term bank loan partially offset by the net increase in trade payables and accruals RMB4.4 million. C Consolidated Cash Flow Statement Cash and cash equivalents as at 31 December 2011 decreased by RMB13.1 million to RMB57.5 million as compared to RMB70.6 million as at 31 December 2010. The reduction was attributed mainly to repayment of RMB15 million short-term bank loan and purchase of PPE of approximately RMB358,000, partially offset by net cash generated from operating activities RMB2.3 million. 9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. Not applicable. 10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. The anticipated continuing slowdown of the global economy has also impacted China and its economic outlook remains uncertain. We will continue to be faced with the challenges of keen competition and falling selling prices within the domestic construction and building industry and in the global markets. Within the PRC, the demand for ASP will continue to increase especially for the bigger construction projects while usage of ACP has declined marginally. We expect this trend to remain in the future and we will continue to be challenged by the fluctuation of crude oil prices, the rising price of raw materials and the increasing cost pressures. For our exports to the global markets, political, social, economic uncertainty and risk, and unforeseen disruption from the natural elements will continue to impact the demand of our aluminium panels. Nevertheless, drawing on our experiences and riding on the back of our success and of our steadily increasing export sales, we will continue to strengthen our alliance and build strong rapport with our overseas agents and customers. To meet with the increasing demands of our customers, we will continue to improve the quality of our Haida panels and also focus on staff training and development. Management will remain vigilant on cost control and cash management and will continue to safeguard the Group s assets. 11. Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? No. (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? No.
2011 Page 11 of 13 (c) Date payable Not applicable. (d) Books closure date Not applicable. 12. If no dividend has been declared/recommended, a statement to that effect. No dividend has been declared or recommended for the financial year ended 31 December 2011. 13. If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transaction as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect. Pursuant to Rule 920(1)(a)(ii) of the Listing Manual, the details of the aggregate value of interested person transactions conducted pursuant to a shareholders' general mandate are as follows: Name of Interested Person Aggregate value of all interested person transactions during the financial year ended 31 December 2011 (excluding transactions less than S$100,000 and transactions conducted under shareholders' mandate pursuant to Rule 920) Aggregate value of all interested person transactions conducted under shareholders' mandate pursuant to Rule 920 (excluding transactions less than S$100,000) for the financial year ended 31 December 2011 Jiangyin Haida Group., Ltd -Reimbursement of electricity expenses - 2,141 -Advances/Purchase of raw material - (221,659) -Purchase of raw materials* - (197,067) -Reimbursements for Purchase of raw materials - 4,563 -Sales of aluminium composite panel - 560 -Purchase of paint - (1,591) Jiangyin East-China Aluminium Technology Co., Ltd. - -Spray-painting income 24,302 -Reimbursement of electricity expenses - 2,745 -Purchase of raw material - (1,533) Jiangyin Yongli Decorative Materials Co., Ltd. -Sales of aluminium composite panel - 2,118 -Sales of aluminium single panel - 2,969 Save as disclosed above, there were no other interested persons transactions conducted for the financial year ended 31 December 2011. *Jiangyin Haida Group requires the Group to provide advances for purchases of raw materials. Such advances would be used to reduce payable for purchase transactions. The outstanding advances to Jiangyin Haida Group as at 31 December 2011 was RMB12,199,000 (FY2010 : RMB23,001,000).
2011 Page 12 of 13 PART II ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results) 14. Segmented revenue and results for operating segments (of the group) in the form presented in the issuer s most recently audited annual financial statements, with comparative information for the immediately preceding year. Our revenue is primarily derived from the manufacture and sale of aluminium composite panels, including interior and exterior composite panels (ACP) and aluminium single panels (ASP). Accordingly, no segmental analysis is provided The following table shows the distribution of the Group s revenue by geographical location of customers, whereas all of the Group s segment assets are based on the location of the assets: BY GEOGRAPHICAL SEGMENTS The Group s geographical segmentation is based on the country of origin of our customers and not the destination of shipments. 1 Jan 2011 1 Jan 2010 to to 31 Dec 2011 31 Dec 2010 FY2011 FY2010 Revenue Unaudited Audited PRC 231,387 203,995 Overseas 148,180 129,503 Total 379,567 333,498 Assets PRC 304,814 313,036 Singapore 122,272 128,055 Less: Inter-segment elmination (118,036) (123,115) Total 309,050 317,976 15. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the operating segments. Following the recent recovery from the global economic and financial crisis, the construction and building industry remained highly competitive with many new entrants competing with existing suppliers of high and low end aluminium panels. Falling selling prices and rising costs of raw materials and inflationary pressure continue to plague the industry. Management remained prudent and vigilant on cost control, tightened credit on customers and stayed focus to manage the operations and meet the demands of both local and overseas customers. Compared to FY2010, we saw an increase in total revenue of RMB46 million or 13.8%, which was attributed to the higher domestic and export sales of aluminium panels. Export sales of ACP had been increasing steadily over the years and had now reached about 39% of the total revenue. (FY2010: 38.8%) Although sales had increased, however, gross profit was affected by the fluctuating raw material costs and rising overhead expenses. We saw a decline in gross profit margin of 2.1%, from 10.6% to 8.5% in FY2011. With lower gross profit, our net earnings after taxation had also been affected.
2011 Page 13 of 13 16. A breakdown of sales. FY2011 FY2010 Increase / (decrease) % Unaudited Audited (a) Sales reported for first half year 166,814 139,458 19.6 % (b) Net profit after tax reported for first half year 2,611 2,416 8.1 % (c) Sales reported for second half year 212,753 194,040 9.6 % (d) Net profit after tax for second half year 306 1,861 (83.6)% 17. A breakdown of the total annual dividend (in dollar value) for the issuer s latest full year and its previous full year. FY2011 FY2010 Dividends paid: - interim dividend - - - final dividend in relation to previous financial year - - 18. Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704(13) in the format below. If there are no such persons, the issuer must make an appropriate negative statement. Pursuant to Rule 704(13) of the SGX-ST Listing Manual, the Company wishes to inform that none of the persons occupying a managerial position in the Company or any of its principal subsidiaries is related to a director or chief executive officer or substantial shareholder of the Company as at 31 December 2011. BY ORDER OF THE BOARD Xu Youcai Chief Executive Officer 27 February 2012